We currently have two available office condos For Sale/Lease at 283 4th St. in the Jack London Square area of Oakland. The condos are located in the old Allied Paper building which was purchased and renovated into business condos by one of the local developers. The building is located within walking distance to all of the new residential developments and restaurants in Jack London as well as the Market Hall which is currently under construction. There is a 7,312 square foot condo available on the ground floor and a 2,336 square foot condo on the second floor. If you are interested in touring or getting more details about the space, please give Sean Murphy a call at 510-273-2010.

The third quarter of 2007 was an exciting time for Aegis Realty Partners. Matt Elmquist completed a long lease negotiation representing Amyris Biotechnologies; a thriving life-science company based in Emeryville focused on clean energy. Matt’s relationship with Amyris dates back to the initial pioneering days of the founders: Dr. Kinkead Reiling, Dr. Jack Newman, Dr. Jay Keasling and Dr. Neil Renninger. The company was newly formed and growing out of the University California Berkeley. Matt was able to find the company a small lab within Wareham’s biotechnology focused project, Emerystation North. Each year the company was experiencing growth and the need for expansion space. What started as 5,000 square feet quickly became 10,000 square feet and another growth in 2006 spurred the company into 22,000 square feet. By early 2007 it became clear that Amyris was going to need more space. After searching the East Bay it was determined that Wareham’s new state-of-the-art life science building was going to be the best solution. The building is located adjacent to the company’s current location and offers Amyris the ability to design a highly improved lab space. Amyris, waiting on second round venture funding, began lease negotiations and was able to sign a 70,690 square foot deal with Wareham Development prior to funding.

“Essentially the landlord was committed to the deal before the financing was in place. We were all moving forward under the guise of ‘we will finance this later,’” stated Matt Elmquist. Just a month after signing the deal, Amyris raised $70 million in financing and is currently planning on expansion into an additional 20,000 square feet.

Matt is no beginner when it comes to receiving awards of this nature. In 2005 Matt Elmquist was recognized with “Deal of the Year” for a lease completed at 555 12th Street in Oakland, representing Ask.com (formerly known as ‘Ask Jeeves’). He has also been featured as “Real Estate Heavy Hitter” numerous times. Matt joined Aegis Realty Partners in 1996. He and his partner Scott Stone, focus on tenant representation and investment sales.

Download the 2007 Quarter 3 Bay Area Office Market Report — Please click here see the Q3 report, including details of the Amyris Biotechnologies deal at EmeryStation East in Emeryville

Please watch our website for the full content of the San Francisco Business Times article

In the fourth quarter of 2006, Aegis reported “Residential Makes Way for Commercial Development” – and that couldn’t have rang more true through 2007. This year we have seen a dramatic decrease in residential land sales and an active office market with flat overall absorption. With plenty of new construction completed around the East Bay, there is a generous inventory of available space. The first quarter saw a jump in average asking rents but quickly leveled through the third and fourth quarter. Once again, Biotech space is in high demand and offers very little inventory.

With half a million square feet of new space in the East Bay, in an already saturated market, new development hasn’t seen the interest developers were hoping for. Wareham Development, the developer of Emerystation East, has seen the most success leasing over 75% of the 245,000 square feet high-end biotech space. Brandywine, now nearing completion of 210,000 square feet of office space in Downtown Oakland, has had tenant interest but is yet to formulate a deal. Surprisingly, the fourth quarter proved well for Alameda, the only submarket to have positive absorption this quarter. This in due part to San Leandro based Penumbra, a medical device company, inking at deal with Dollinger at 1351 Harbor Bay Parkway.

The office market was inundated with building trades in the East Bay in 2007. The year kicked off with Hines purchasing Watergate, a portfolio consisting of four high-rises and over a million square feet of office in Emeryville. Harvest Properties was the next in line, purchasing Bay Center, three mid-rise buildings totaling 327,000 square feet in Emeryville. Alameda also saw a handful of buildings change hands including Dollinger Properties picking up 172,000 square feet in Harbor Bay and Ellis Partners following suit with the purchase of 65,000 square feet at 1600 Harbor Bay Parkway. It is expected that Oakland will continue to see growth and construction over the next year. Shorenstein has released plans for a new high-rise at the T-11 site, located on 12th Street in City Center. SKS Development is holding on to an entitled office building site located at the corner of 11th and Broadway, adjacent to the University of California Office of the President building.

Overall, 2007 was an active year. Many tenants looked for economical alternatives to growing lease rates. With flat absorption and growing inventory, it is expected that rents will remain steady as they did through the past two quarters.

Aegis Realty Partners Press Release

For Immediate Release

July 23, 2007

Aradigm Corporation Enters Sublease Agreement with Mendel Biotechnology

Hayward, CA — July 23, 2007 – Aradigm Corp., a specialty pharmaceutical company, has subleased approximately 54,000 square feet in its headquarters facility located at 3929 Point Eden Way in Hayward, to Mendel Biotechnology. The multi-year, renewable agreement commenced July 18th, 2007. Scott Stone and Garrett Krueger of Aegis Realty Partners worked on behalf of Aradigm to sublease a portion of their existing space after a corporate restructuring. Aradigm will continue to occupy a portion of the facility and sustain all operations. The subtenant, Mendel Biotechnology, is a plant biotechnology company which required improved space to accommodate expansion tied to a recent funding event. Mendel Biotechnology was represented by Bob Ferraro and Mark Kol of CB Richard Ellis in Oakland.

“We are delighted to have reached an agreement with Mendel Biotechnology and to share a first-class facility with them,” said Dr. Igor Gonda, Aradigm’s President and CEO. “Importantly, we are able to accomplish this without the need for relocation and with no material disruption to our operations.”

About AEGIS:

Oakland-based Aegis Realty Partners is a full service commercial real estate brokerage firm. Aegis has represented clients in transactions totaling over 2.8 million square feet, and is unique among real estate brokerage firms for its focus on tenant representation. For more information about Aegis, please visit the company’s website at www,aegisrealty.com.

Contact Information

Jessica Stewart

Aegis Realty Partners

510.273.2012

Jessica@aegisrealty.com

www.aegisrealty.com

For more information about Aradigm Corporation, go to www.aradigm.com

For more information about Mendel Biotechnology, go to www.mendelbio.com

The Bay Area currently is home to about 20 million square feet of lab space. The

vacancy rate for life science lab space is below 10% leaving very little room for

future growth. New construction is scarcely keeping up with the current

demand. It is predicted that in the next 12 months, 30 start-up biotechnology

companies will spawn from Northern California alone.

Wareham Development’s recent completion of its new state-of-the-art lab

facility immediately addresses part of the demand. Wareham, a local developer

of office and lab space and the largest life sciences landlord in the East Bay, has

timed the delivery of EmeryStation East very well. Wareham has signed term

sheets for 74% of the 245,000 square foot building which was completed in

June on spec.

UC Berkeley along with Keasling Labs, a research lab associated with the

university and focused on clean energy, was recently awarded 2 research grants

totaling $625 million. The grants, from the US Department of Energy and BP,

have spawned several leasing requirements from UC Berkeley and other related

clean energy companies. With these well-funded organizations vying for the

premium new space, there has been a steady flow of smaller tenants being

forced to surrounding areas.

Given the asking rents for Emeryville lab space ($3.50NNN) and supply

constraints, tenant demand in surrounding submarkets has been on the rise. In

submarkets such as Alameda, Hayward, Fremont and Richmond typical asking

rents are closer to $2.00NNN. The trade-off for tenants in these suburban

markets are less public transit alternatives and amenities. Second and third

generation space has become the only economic alternative for smaller companies

and those companies in the early stage of development.

Urban residential construction has led the way in new development over the past two years. Condominium projects have sprouted out of the ground from Berkeley to Oakland. As the housing demand dramatically dropped in recent months, the result has been a slow down of residential development and scarcity of new projects. Despite this trend, commercial development is picking-up pace with two monumental projects quickly taking shape in Oakland and Emeryville.

Class A office rents are exceeding $33 per square foot on an annual basis and vacancy has dropped below nine percent in Oakland. This movement in the market has allowed Brandywine Realty Trust to premier its 250,000 square foot nine story office project in the Lake Merritt market. This is the first new commercial office development since Shorenstein Realty Service built 555 12th Street in City Center over five years ago. Brandywine has committed to Center Twenty One at 2100 Franklin with no anchor tenant and will be relying on the strong leasing market as well as some of their larger, established tenants to fill this new office space. The combination of Center Twenty One with the existing 2101 Webster facility, along with its upgraded two story glass lobby & atrium with over forty thousand square feet of on-site retail, should make this one of the premier buildings in the downtown Oakland market. This facility will be a LEED certified “Green Building” incorporating natural light, efficient heating and cooling systems as well as using sustainable construction methods. Occupancy is due for the second quarter of 2007.

Another major project coming out of the ground is Wareham’s EmeryStation East. Wareham Development is close to completion on its 245,000 square foot, life science facility located at the corner of Hollis and Powell Streets in Emeryville. This facility will cater to the laboratory and research tenants in the East Bay. Floor plates range up to sixty-four thousand square feet, which will afford maximum flexibility for large and small tenants. In typical Wareham fashion, EmeryStation East will offer a twenty thousand square foot landscaped plaza, ample structured parking as well as outdoor terraces and balconies. This building, like Center Twenty One, is being built “on spec”, with no anchor tenant firmly secured.

In the process and design phase, not too far behind, are two other significant projects. SKS Development has purchased an entitled office site on the corner of Broadway and 11th Streets, adjacent to the University of California Office of the President building. This office tower is rumored to be in the design and approval phase to deliver at minimum two hundred and twenty five thousand square feet of office space in the City Center market. Additionally, Shorenstein Properties is rumored to begin another office project at City Center. If they move forward in 2007, this potential project will add another 510,000 square feet of space to the office market.

With close to half a million square feet of new office and biotechnology space being added to the East Bay market, the next two years should offer office tenants and life science tenants, the opportunity to grow into new Class A state-of-the-art facilities. Because of high construction costs, the rent expectation in these facilities is significantly above existing rents. This has created a big gap between the asking and actual receiving rents for these projects.

The I-880 corridor vacancy rate continued to decrease as office rents reached new highs in the third quarter. The Emeryville submarket is positioned for further rent increases with several sizeable companies looking at expansion and two substantial office projects poised to sell.

Emeryville experienced the steepest rise in average rent prices, increasing from $2.35 in the second quarter to $2.65 in the third quarter. Emeryville’s vacancy rate dropped to 8.7% as the result of several large deals. Big Fix expanded from 12,637 square feet to 26,500 square feet while staying within the city. Jamba Juice leased 35,000 square feet at 6475 Christie, relocating its headquarters from San Francisco. MobiTv is rumored to be looking for an additional 25,000 to expand at 6425 Christie.

Equity Office Properties is currently marketing the Watergate Towers buildings for sale. The complex includes 1.14 million square feet of office space. EOP, the largest office landlord in the country, has owned Watergate Towers since 1998. Average starting rates have risen from $1.90 in 2004 to $2.45 in 2006. Underwriting rates for the sale have pushed asking rents north of $2.75, equaling the highest Class A downtown Oakland rates.

In addition, TMG Partners is rumored to be considering a sale of Bay Center in Emeryville, a three building office complex totalling 330,000 square feet. Bay Center is the former Sybase headquarters and is now home to several technology companies as well as Novartis and Jamba Juice.

As the market for office space tightens in Emeryville, tenants looking for expansion space are beginning to plan further into the future. As space options decrease and rents rise, tenants will begin to look at alternative markets to meet their requirements.

Oakland’s Uptown neighborhood, the area bounded by Telegraph and Grand Avenue to the north and 16th Street and Broadway to the south, continues to see a positive transformation and resurgence in the first half of 2006. Residential and commercial development combined with investment projects, are the primary drivers in this revival with over 1,700 residential units planned and over 300,000 square feet of new office and retail space.

Residential development became a heated topic during Oakland‘s June Mayoral race. Despite some local developers’ doubts, the Uptown area continues to see new projects. Signature Properties’ Broadway Grand project, consisting of 400 residential units and 20,000 square feet of retail, is well under construction at the intersection of Broadway and Grand Avenue. Forrest City commenced construction on its long awaited Uptown Project located at 20th Street and Telegraph Avenue. The first phase consists of 800+ residential units and 10,000 square feet of retail. More entitlements have been issued to 100 Grand and 17th and Broadway to build another 500 residential units.

Commercial real estate in the Uptown district has also seen a surge of building and investment activity over the last few months. Metrovation purchased the historic 187,483 square foot Bruener‘s building at 2201 Broadway and has coined it the “Heart of Uptown.” 1500 Broadway, LLC is purchasing the 90,000 square foot building at 1500 Broadway. Brog Properties purchased the 110,327 square foot building at 1611 Telegraph Avenue (Latham Square), and Brandywine Realty Trust’s new office development at 2100 Franklin will add 215, 000 square feet of Class A office space and 16,000 square feet of retail to this burgeoning market.

With more residential developments slated for the near future and additional investment opportunities coming to the neighborhood in the next few months, the Uptown office market is evolving within its new surroundings. Given the wealth of opportunities for increased parking, foot traffic and freeway access, the revival of the Uptown district has created a new landscape for businesses and residents in Oakland.

The rent of positive absorption continued over the past three months of 2005. This, as well as sales of many significant office buildings within the 880 Corridor, has caused office rents to increase steadily.

The Bay Area has witnessed extremely strong demand for investments in Class A office buildings. This demand is due to historically low interest rates, an increased amount of foreign investment dollars, continued flow of money from the capital markets and optimism that office rents will continue to rise.

Several significant Class A office buildings in the Oakland CBD traded in 2005. Two recent and notable sales include the purchase of 1333 Broadway and 2101 Webster Street by Brandywine Realty Trust (formerly Prentiss Properties). With these two transactions and the pending construction of 2100 Franklin, Brandywine is now the largest Class A office landlord in Oakland controlling 1.7 million square feet (Shorenstein is second with 1.6 million square feet). Brandywine and Shorenstein were also among the finalists for the purchase of 1999 Harrison Street in the Lake Merritt office submarket. The competition drove the sales price north of $300 per square foot and ultimately Beacon Capital Partners of Boston was chosen as the best buyer. Beacon’s 2005 buying spree in the Bay Area also included 50 Beale Street, 100 California Street and 1 Sansome Street in San Francisco.

The Emeryville and Alameda office submarkets were hardly overlooked. Wareham Development introduced plans for EmeryStation East, a lab and office building consisting of 250,000 square feet, after they acquired 100,000 square feet of land at the intersection of Hollis and Powell Streets. Wareham’s appetite for Emeryville office and lab space was, in part, fueled by its leasing success at EmeryStation and Heritage Square. The two largest office/ R&D projects in Alameda, Marina Village and The Waterfront, are on the market and rumored to be changing hands in early 2006.

As investors continue to push sales prices higher, tenants will continue to see a rise in asking rents and expense pass-throughs as well as decreased allowances for space improvements. As a result, many tenants who signed leases and subleases following the dot-com collapse will begin to shift toward cheaper alternative markets.